Which work loses its funding?
New evidence can reopen the budget. Explain the trade-off and who can release the next tranche.
“We didn’t wait for a budget cycle; we had real-time business intelligence.” (opens the source)
The question
You are Meridian’s CEO. €12m remains in this year’s budget. The prior €4m spent on the AI programme is unrecoverable and is outside that remaining budget.
| Base (€m) | |
|---|---|
| Full AI rollout | 6 |
| Bounded AI pilot instead | 2 |
| Mandatory reliability work | 5 |
| Market launch | 5 |
Choose rollout or pilot, never both. The market launch cannot start below €5m. Benefits are not comparable risk-adjusted returns.
“Choose a funded plan and assign the next-stage gate.”
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A strong answer, step by step
Open each step in turn. This is one strong answer, not the only one.
Step 1: Compare complete plans
What would you do here? Open the move you’d make.
Choose a complete plan and state what waits.
The strong move. A plan must show what it gives up, not just the work it includes.
Promise rollout, reliability and launch within €12m.
Tempting, but it misses something. This move misses the evidence or constraint in this step.
See how a strong candidate says it
“Rollout plus reliability uses €11m. Pilot, reliability and launch use €12m. The first defers launch; the second tests the AI case before scale. I would choose the second while the rollout benefits remain untested.”
Why it works: A plan must show what it gives up, not just the work it includes.
Step 2: Separate the next tranche from sunk cost
What would you do here? Open the move you’d make.
Set a gate for new money.
The strong move. The next decision concerns future resources and evidence.
Finish because €4m has already been spent.
Tempting, but it misses something. This move misses the evidence or constraint in this step.
See how a strong candidate says it
“The prior €4m cannot be recovered. It does not make another €6m mandatory. Give the pilot an operating sponsor, independent finance review and a measurable gate before any rollout tranche.”
Why it works: The next decision concerns future resources and evidence.
Step 3: Reset the funding plan
Reliability now needs €7m. The budget stays at €12m; no extra funding is approved.
What would you do here? Open the move you’d make.
Fund the €9m reset and defer launch.
The strong move. Neither original plan fits. Partial funding does not buy the promised launch.
Treat the remaining €3m as a funded launch.
Tempting, but it misses something. This move misses the evidence or constraint in this step.
See how a strong candidate says it
“The old plans now cost €13m and €14m. Fund €7m reliability plus the €2m pilot: €9m, with €3m uncommitted. Defer the indivisible €5m launch.”
Why it works: Neither original plan fits. Partial funding does not buy the promised launch.
Step 4: Make the authority clear
What would you do here? Open the move you’d make.
Record the deferred work and approval needed.
The strong move. A constraint change needs a new commitment, not a hidden overspend.
Let each leader preserve their original promise.
Tempting, but it misses something. This move misses the evidence or constraint in this step.
See how a strong candidate says it
“Tell the board what stops, who owns each funded result and what would justify a new request. Do not assume the budget increased. Keep the €3m uncommitted until a valid use is approved.”
Why it works: A constraint change needs a new commitment, not a hidden overspend.
The answer, in short
- Decision
- Reset to reliability and a bounded pilot while the launch waits.
- Because
- The revised mandatory cost makes both original plans infeasible.
- What would change it
- A changed constraint, stronger evidence or approved new funding could reopen the choice.
Reliability rises to €7m. What exactly do you stop or defer?
Common traps
- Using sunk cost as a reason to spend.
- Calling an underfunded launch committed.
Check your answer
- I compared complete plans.
- I excluded sunk spending.
- I stayed within the new constraint.
- I named the next funding gate.
Last reviewed Nov 10, 2026